There are some few points that traders with forex brokers with zar accounts have to check before signing up with any of the CFD or fore brokers. It includes the following:
Safety should come first: check the regulatory compliance
Matters regarding regulations have to come first to make sure that your funds are safe and it protects you in case of any practices which are bad like manipulation or fraud by the broker. In South Africa, you have to check whether the broker you are going for is regulated by the FSCA. Any broker who is good will ensure to be compliant with the main regulators and will not have past complaints against them.
From the South African traders, a good broker has to be compliant with at least one government regulator such as FCA in UK, FSCA in South Africa, CySEC for the USA or ASIC of Australia. In case the broker happens to be regulated and registered with several regulatory authorities without having any complaint against them, then you should consider them to be the best for trading.
For such, you need to search for the name of the broker or their number for regulation. On the regulator whom they are regulated with CySEC, FCA, FSCA or ASIC websites because majority of them have searches available for the public.
At the same time, if you are searching for brokers who are approved on the FSCA, then to check for the status of authorized only is not enough. You have to ensure that you verify if the broker is approved through offering derivatives instruments. You will need to ensure that the broker whom you are choosing is approved for having to offer the derivative trading.
So next you are out choosing any broker, you have to do a proper search and check out if the broker is regulated or they are not regulated. If the broker tends to claim that they are regulated, then you need to search for their names on the regulatory authority website to verify if their claim is true or not. You will also have to check if they are having any complaints which have been filed against them in the past.
If the broker happens not to be regulated, or has a complaint which is valid laid against them, or it has been in the past fined for some bad practices, then it might be best for you to stay away from such a broker. Also, another rule is that, you should never choose a broker that is not regulated with the top regulators which include FCA, FSCA, ASIC or CySEC.
Fees for forex brokers
The forex brokers are known to charge fees via their commissions spreads on the trades in some cases, and rollovers when it comes to open positions overnight. There are some brokers that are known to charge an extra fees when the trader does withdrawals and deposits but at the same tie, don’t show it as if it is their fees. To track the fees that is charged by the broker and comparing it with the other brokers might not be easy but you have to try and do it anyway.